John and Bridget reveal the secrets to the backdoor Roth IRA strategy. If you think you make too much money to contribute to a Roth IRA, think again! Today they discuss who might benefit from using this strategy. Join them as they break down the steps and provide valuable insights on tax planning.

To learn more, view the full video and blog post by visiting

#ACPMemberWisdom #backdoor #rothira #taxplanning #savings…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Backdoor Roth – Who is it for?

The Backdoor Roth IRA is a financial strategy that allows high-income earners to contribute to a Roth IRA, even if they are above the income limits. This method involves making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA.

The Backdoor Roth IRA is primarily designed for individuals who earn too much to contribute directly to a Roth IRA. Currently, for 2021, the income limits for contributing to a Roth IRA are $140,000 for single filers and $208,000 for married couples filing jointly. If you earn more than these limits, you are not eligible to contribute directly to a Roth IRA.

However, by using the Backdoor Roth IRA strategy, high-income earners can still take advantage of the benefits of a Roth IRA, such as tax-free growth and tax-free withdrawals in retirement. This can be especially beneficial for individuals who anticipate being in a higher tax bracket in retirement.

It’s important to note that the Backdoor Roth IRA strategy is not without its complexities and potential pitfalls. For example, if you have pre-tax traditional IRA assets, the conversion to a Roth IRA may trigger a tax bill. It’s essential to consult with a financial advisor or tax professional before pursuing this strategy to ensure that it is the right move for your specific financial situation.

In conclusion, the Backdoor Roth IRA is a useful tool for high-income earners who want to take advantage of the benefits of a Roth IRA. However, it’s crucial to understand the rules and potential tax implications before proceeding with this strategy. Consulting with a financial professional can help you make an informed decision about whether the Backdoor Roth IRA is right for you.